Norway’s Statoil has opted for a semisubmersible floating production solution to develop its Skrugard and Havis fields in the Arctic Barents Sea, with a pipeline to transport the crude to shore and a new onshore terminal.

The field is scheduled to come onstream in 2018, with the Skrugard oil to be piped to shore at Veidnes. “The decision to bring Skrugard oil ashore at Veidnes is a key element of the further development of the Norwegian oil and gas industry. This may spark off a new industrial era. This concept choice will facilitate further exploration and help make any future discoveries profitable,” said Øystein Michelsen, Statoil’s executive vice president for Development and Production Norway (DPN).

The fields in Production License 532 will have common infrastructure, with production from both to be tied back to the semisub floater via a subsea production system located in 380 m (1,247 ft) of water. Production is estimated to eventually flow at almost 200,000 boe/d.

The oil will be transported through a 280 km pipeline from the Skrugard field to Veidnes, located outside Honningsvåg on the northern Norwegian coast. It will be piped directly to an oil storage facility and stored in two mountain caverns. The oil will be sent on from there by pipeline to a quay for tanker transportation.

“This is part of the ambition of making Northern Norway the country’s next big petroleum region. We are pleased to have selected a good concept and hope that this may form the basis for a valuable partnership with local authorities and industry also in the future,” added Michelsen.

Statoil and its partners discovered Skrugard and Havis, which are two independent structures within the same licence, during 2011 and 2012. Both make up the Skrugard field development, for which 400-600 MMbbl of recoverable oil have so far been proven.

The operator added that its exploration campaign will target nine new prospects in the Barents Sea to be drilled this year and next. The campaign will start in the Skrugard area, where four new prospects will be drilled.

“We have evaluated the neighbouring area associated with the 22nd Licensing Round, and see upside potentials in the licence. We see additional opportunities beyond the four planned wells. Because of this potential it is important to have a concept which also ensures the necessary flexibility to tie in future discoveries to the Veidnes oil terminal,” said Michelsen.

Skrugard and Havis are located in blocks 7219/9 and 7220/4, 5 and 7, about 100 km north of the Snøhvit field, 150 km from the Goliat field and nearly 240 km from Melkøya. The fields lie 7 km apart.

A Plan for Development and Operation is expected to be submitted in 2014. The field partners are Statoil (50%), Eni (30%) and Petoro (20%).

Offshore